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CORPORATE INCOME TAXES - 5.0%. Used for the Uniform School Fund. Domestic and Foreign Corporations are required to pay a 5.0% state income or franchise tax on income earned in Utah. Multi-state corporations pay taxes based on apportioned income calculated through a formula which includes a (1) Property Factor, (2) Payroll Factor, and (3) Sales or Gross Receipts Factor. Go to http://www.tax.utah.gov/research/effective/r865-06f-008.doc for a detailed explanation. Subchapter S Corporations, LLCs, LCs, LP, and Partnerships are taxed at the individual taxpayer level.
INDIVIDUAL INCOME TAXES - 2.3% TO 7.0%. Used for the Uniform School Fund. Individuals pay state income tax on income earned in or derived from Utah. Credits for taxes paid in another state are limited to the effective rate as if earned in Utah. There are no local governments that assess an income tax.
PROPERTY TAXES - Approximately 1.3% (statewide average) of assessed value. Used for School District and Taxing Authority. Taxes are assessed by local governments, usually at the county level. Commercial and Business Personal Property is assessed at 100 percent of fair market value. Residential properties are assessed at 55 percent of fair market value. Agricultural properties may be subject to Greenbelt provisions. Tax rates vary from county to county and city to city due to taxes approved for special service districts.
SALES AND USE TAXES - Statewide starts at 4.75% and up (dependent on the additional taxations of each county). The Weber County complete tax is currently 6.60%. Used by local cities, towns, counties, and the State of Utah. Sales tax is collected on all retail sales. Rates may vary by locale due to special assessments or special service district assessments. Raw materials and sales for resale may be exempt. Products purchased out of state for final consumption within the state are subject to use taxes at rates equivalent to the sales taxes in the jurisdiction where the product is consumed.
MOTOR FUEL TAXES - 24.5 cents per gallon. Used for state highway and local road construction. Fuel tax is collected on each gallon of fuel purchased. Off highway fuel use may be exempt from tax.
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